TechnipFMC said it signed an agreement with Norway’s Island Offshore group to acquire a majority stake in its subsea unit.
For an undisclosed amount, TechnipFMC will acquire a 51 per cent stake in Island Offshore’s wholly owned subsidiary, Island Offshore Subsea AS, subject to satisfaction of closing conditions.
The unit provides riserless light well intervention (RLWI) project management and engineering services for plug and abandonment (P&A), and well completion operations.
Island Offshore Subsea AS developed proprietary designs related to subsea P&A and riserless coiled tubing. In connection with the acquisition of the controlling interest, TechnipFMC and Island Offshore will enter into a strategic cooperation agreement to deliver RLWI services on a worldwide basis, which will also include TechnipFMC’s RLWI capabilities.
The Norwegian subsea unit will be rebranded and become the operating unit for TechnipFMC’s RLWI activities worldwide.
Odd Strømsnes, vice president of offshore integrated services at TechnipFMC, will become the managing director of Island Offshore Subsea AS.
Morten Ulstein, chairman of the Island Offshore Group, stated: “Over the years we have had a rewarding cooperation with TechnipFMC, and we now see that an even closer integration of our companies and services is right to further develop and strengthen our position within RLWI, both in Norway and internationally.”
The companies’ track record for delivering services together helped significantly boost production from more than 500 subsea wells, Hallvard Hasselknippe, president of TechnipFMC’s subsea business said.